between exchange rate run that triggered dollar blue In July, the famous newspaper economist published a survey in which he stated that In Argentina, the wholesale dollar should depreciate and the peso should strengthen, more precisely, The Argentine Peso is “undervalued” by 11.3%,
data comes from Big Mac Index (IBM), This analysis compares the purchasing power parity between different countries because Big Mac Hamburger McDonald’s is sold under standardized specifications in most countries of the world.
this Monday, wholesale dollar value -which can only be accessed for operations of at least one million dollars- opened for $130.39 per unitUp sixty-five cents from last Friday’s closing price.
According to The Economist, The wholesale dollar value is only $114.56 . should beBecause this is the value that equals in dollars, Price of a Big Mac in Argentina. According to a survey in 4 cities, the average price of a famous hamburger is 590 Argentine pesos, while the cost of one big Mac In the United States it is $5.15.
When you take the actual exchange rate at $129.12, you get $4.33, or $1.75 less. So following this logic, The currency in our country is “undervalued” by 11.3%,
Measured by retail dollars, the price of one hamburger in Argentina is equal to US$2.63 (since the savings dollar is $224.4). But if you compare it with Blue Dollar Price Today ($338)To buy a Big Mac combo, it would only take $1.74 USD.
How Big Mac Index Works
This index is based on “Principle”purchasing power parityDeveloped in the 19th century by Swedish economist Gustav Kassel, according to which one currency is “aligned” with another if it allows the purchase of the same basket of goods at the same price, expressed in both currencies. has gone.
Taking similar goods to any country in the world, it is easier to test the theory than to resort to price indices based on different consumption baskets.
what are the most expensive coins
According to IBM, the currencies of Nearly all Latin American countries are undervalued against the dollar, With the exception of UruguayWhoever has the most expensive hamburger pays an average of US$6.09.
Globally, the countries with the largest depreciation of their currency are ranked first, venezuela bolivarafterwards RomanticThe Indonesian RupiahThe Colombian Peso And this Guatemala Quetzal,
Adjusted Big Mac Index
Although Big Mac Index ignores the traditional so-calledBalasa-Samuelson Effect“which states that the calculation of purchasing power parity Must be adjusted according to the GDP per resident of the countries
For this reason, there is also a British magazine edition that includes the “Balasa-Samuelson effect”. from there it’s like this The Argentine Peso 11.3% will not be “undervalued”, but will be slightly “overvalued”: $148.87, a price not too far from the official exchange rate, but still Much less than the “alternative” dollar price,